The global multimedia chipsets market was valued at US$22.9 bn in 2014, says Transparency Market Research (TMR). Over the past couple of years, the ceaseless demand for handheld and portable electronic devices has been one of the foremost reasons for the surging demand for multimedia chipsets. In mobile communications, 4G LTE is supported by a growing number of medium- and high-range smartphones. Following this, it is 5G communication networks that are the target of the mobile industry for seamless mobile communication. Currently, ultra-integrated SOC (system on the chip) chipsets are designed to support both basic and advanced functionalities of 4G LTE networks. This is what differentiates newer semiconductor components from their predecessors.

In the entertainment field, the rapid expansion of set-top box (STB) technology and IPTVs is also bolstering the growth of the multimedia chipsets market. In satellite and cable television formats, STBs comprise a TV tuner input connected through high-configuration semiconductor chips for the input signal to be converted into an external signal and displayed on a screen. Likewise, television services that are delivered over the internet protocol (IP) are transmitted using local area networks (LAN) or the Internet, both of which require multimedia chipsets to support high-volume data streaming.

These factors will aid positive development of the multimedia chipsets market at a CAGR of 6.6% from 2015 to 2023, enabling the market’s valuation to reach US$40.9 bn by 2023. Asia Pacific will emerge as a significant market contributing to the development of the global market. The region held a significant position in the global market for multimedia chipsets in the recent past as well. In 2014, Asia Pacific held the largest share in the global multimedia chipsets market owing to the steady demand for smart devices and the increasing demand for digital TV for viewing television content.

China stands as the largest market for multimedia chipsets in Asia Pacific and will continue to enjoy a dominant position in the coming years as well. Consistently increasing demand for smart consumer electronics, which include branded smartphones, tablets, gaming consoles, and wearable electronics etc. is the reason for this. Other than this, the rising number of local electronics manufacturers that offer a host of inexpensive consumer electronics is bolstering the market’s growth. This includes smartphones, smart televisions, and wireless telecommunication devices to cater to the needs of individuals from different strata of society. These factors are positively impacting China’s multimedia chipsets market.

Qualcomm, the leading vendor of mobile phone chipsets, boasts of a range of Snapdragon processors with advanced LTE functionalities. These devices support breathtaking speed, ultra-fast connectivity, jaw-dropping graphics, and longer battery life of mobile devices for an enhanced mobile use experience. In this space, Taiwanese chipmaker MediaTek has developed a 10-core processor that houses Helio X20 class of chipsets to compete in the premium segment of the mobile market. However, the niche capabilities of the company lie in making chips for budget devices and it has been the go-to company for these needs.